Infogrames Gets Control of GT Interactive

Published: November 16, 1999

PARIS, Nov. 15—
Infogrames Entertainment S.A., Europe's No. 1 maker of video-game software, said today that it had bought a controlling stake in the GT Interactive Software Corporation for $135 million in cash and notes.

Infogrames will own about 70 percent of GT Interactive, the maker of popular games like Total Annihilation and Deer Hunter, once the transaction is completed.

Infogrames has agreed to buy 33.4 million common shares of GT Interactive from the founding Cayre family for $25 million, plus an additional 28.6 million newly issued shares for $50 million. Infogrames will buy a $60.5 million convertible note from GT Interactive, which can be converted into 32.7 million common shares. Infogrames will also acquire and surrender $10.5 million in GT Interactive debt held by members of the Cayre family.

GT Interactive, based in New York, said in June that it had hired the investment banker Bear Stearns & Company to seek a merger or sale. That announcement came one month after the company dismissed 35 percent of its work force as part of an effort to reorganize and streamline itself.